Upland Software (UPLD) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $53.4M, down 23% year-over-year due to divestitures, but Adjusted EBITDA was $13.6M with a 25% margin, marking a return to positive core organic growth and improved profitability.

• Net loss attributable to common shareholders was $14.5M, with net loss per share at $0.51.

• Streamlined product portfolio, cost reductions, and AI-enablement efforts are driving improved performance and future positioning.

• 100 new customers and 263 customer expansions in Q2, with strong AI product suite momentum and industry recognition.

• Core organic growth rate for subscription and support revenue was 1.2% for Q2 2025.

Financial highlights

• Subscription and support revenue was $50.5M in Q2 2025, down from $65.5M in Q2 2024.

• Gross profit margin improved to 75% in Q2 2025 from 70% in Q2 2024.

• Free cash flow for Q2 was $2.7M, impacted by $7M in one-time divestiture-related expenses.

• GAAP operating cash flow was $3.3M in Q2 2025.

• Cash and equivalents at June 30, 2025 were $41.0M.

Outlook and guidance

• Q3 2025 revenue expected between $46.8M–$52.8M; Adjusted EBITDA between $14.5M–$17.5M, with a midpoint margin of 32%.

• Full year 2025 revenue expected between $211.8M–$223.8M; Adjusted EBITDA between $55.8M–$61.8M, with a midpoint margin of 27%.

• Core organic growth projected to improve to approximately 3% in the second half of 2025.

• Full year free cash flow target raised to around $20M.

• Guidance midpoint lowered by $700,000 due to lower forecasted professional services revenue.